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Kansas: Unpaid Sales Tax Shutters 10 Taco Ticos

  • Mar 6, 2013 | Gail Cole

 Taco Tico Fans in Wichita Will Have To Find Their Tacos Elsewhere.

There are many good reasons for a business to remit the sales taxes it collects. From an altruistic point of view, it helps the greater community by providing funds for education, fire departments, and other essential services. From a moral standpoint, it’s honest; customers pay that money with the assumption that it will be paid to the state. Selfishly speaking, it allows the business to remain in business.

A business in Kansas did not remit the sales taxes it collected at ten restaurants between June 2011 and October 2012, and now it's not in business. The Kansas Department of Revenue says that Ajax International Group, which owns the 10 Taco Tico restaurants in question, now owes more than $400,000 in retail sales tax to the Sunflower State.

As of yesterday, six Taco Ticos in Wichita and one each in Arkansas City, Derby, Dodge City and Topeka are closed. According to KSN.com, the Kansas Department of Revenue seized the restaurants “for non-payment of retail sales taxes totaling $435,000.” The restaurants could be reopened if the Kansas DOR and Ajax International Group arrange a tax payment plan.

It’s a cautionary tale. No matter what motivates you -- be it altruism, morals, or selfishness – there are good reasons to collect and remit sales tax.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.